The two leaders reportedly met to discuss the issues of mutual interests and to lay down the groundwork for a meeting between Indian Prime Minister Manmohan Singh and his Pakistani counterpart Nawaz Sharif on the sidelines of the UN General Assembly in New York Sep 29, the Dawn newspaper reported.

They also discussed matters relating to the Line of Control ceasefire violations and held talks on addressing reservations and security concerns of both countries, the report said.

Pakistan's Foreign Office spokesman Aizaz Chaudhry said in Islamabad Sep 5 that the Khurshid-Aziz meeting "could be a useful opportunity to engage in a constructive dialogue to discuss ways of building mutual trust and improving bilateral relations".

Manmohan Singh said before arriving at a "final decision" on meeting Sharif in New York, he would have to factor in "certain harsh realities" like India being affected by terror.